LG.Philips Being Investigated in Three Countries for Anticompetitive Practices

| About: LG Display (LPL)
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South Korean LCD manufacturer LG.Philips LCD is being investigated by authorities in the U.S., Korea and Japan for possible anticompetitive practices in the liquid-crystal display market.lpl In a concise statement, the company said just that it "takes this matter very seriously and will cooperate fully with regulatory authorities." Company spokesman Lee Bang Soo declined to comment further regarding details of the investigation. Shares fell to record lows in Seoul during trading Tuesday as worries the three country probe could cut into profits spread. Chief investment officer at SH Asset Management Kim Seong-ki reiterated his firm's 'underweight' rating on the stock saying, "We expect LG.Philips to keep losing money at least throughout the first half [of 2007]."
• Sources: WSJ, WSJ [II], Reuters. Conference call transcripts: LG Philips LCD Q3 2006
• Related commentary: LCD Manufacturer Collusion? If So They're Really Bad At It, Slowing Demand Growth in World LCD Market is Worrisome, More Red Ink for LG.Philips in Q3 on Flat Panel Weakness, LCD Producers Continue To Add Too Much Capacity As They Battle for Market Share
• Potentially impacted stocks and ETFs: LG.Philips (NYSE:LPL). Competitors: AU Optronics (NYSE:AUO), Matsushita Electric (NYSE:MC), Sharp (OTCPK:SHCAY), Sony (NYSE:SNE), Toshiba (OTCPK:TOSBF), Sanyo (OTC:SANYY)

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